HomeMy WebLinkAbout1994-174-10/18/1994-1995 BUDGET CAPITAL IMPROVEMENT FUNDS CASH MANAGEMENT INVESTMENT DEBT POLICIES ECONOMIC DEVELOPMENT_ .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
RESOLUTION 94-174
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE FINANCIAL AND MANAGEMENT POLICIES
RELATING TO THE 1995 ANNUAL BUDGET AND
SUBSEQUENT FISCAL YEARS
WHEREAS, the City Manager and City Council have reviewed various financial
and management policies in preparation for the annual budget process and in
conjunction with the City's five-year financial plan; and
WHEREAS, the City of Fort Collins ("the City") is committed to sound
financial planning; and
WHEREAS, these Financial and Management Policies establish guidelines for
the preparation of the annual budgets of the City and its long-range financial
plans; and
WHEREAS, the City Council wishes to formally adopt these Financial and
Management Policies to facilitate the preparation of the budget for the fiscal
year beginning January 1, 1995, and subsequent fiscal years.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1. That the Council hereby adopts the Financial and Management
Policies attached hereto as Exhibit "A," and incorporated herein by this
reference.
Section 2. That the Financial and Management Policies adopted by the
passage of this Resolution shall be used for the annual budget for 1995 and shall
thereafter remain in effect until the same are amended by subsequent action of
the City Council .
Passed and adopted at a regular meeting of the Council of the City
of Fort Collins held this 18th day of October, A.D. 94.
yor
ATTEST:
VCity Clerk % .
EXHIBIT A
FINANCIAL AND MANAGEMENT POLICIES
TABLE OF CONTENTS
PAGE
SECTION 1 GENERAL
1 .1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1 .2 Revenue and Expenditure Limitation . . . . . . . . . . . . 1
1 .3 Budget Submittal and Presentation . . . . . . . . . . . . . 1
1 .4 Budget Process and Philosophy . . . . . . . . . . . . . . . 3
SECTION 2 REVENUE POLICIES
2.1 Revenue Limitation . . . . . . . . . . . . . . . . . . . . . . . 6
2.2 Revenue Review and Projection . . . . . . . . . . . . . . . 7
2.3 Fee Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.4 Sales and Use Tax Distribution . . . . . . . . . . . . . . . 9
2.5 Private Contributions . . . . . . . . . . . . . . . . . . . . . 10
SECTION 3 FINANCIAL ADMINISTRATION
3.1 Administrative Charges . . . . . . . . . . . . . . . . . . . . 10
3.2 Payment in Lieu of Taxes (PILOT) . . . . . . . . . . . . 11
3.3 Lease-Purchase . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.4 Human Resource Management and Productivity . . . 13
3.5 Medical Insurance and Retirement Plan . . . . . . . . . 15
3.6 Building Maintenance Costs . . . . . . . . . . . . . . . . 16
3.7 Poudre Fire Authority-Revenue Allocation Formula . 17
3.8 Rebate Programs 18
SECTION 4 GOVERNMENTAL AND PROPRIETARY FUNDS
4.1 General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.2 Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . 20
4.3 Internal Service Funds . . . . . . . . . . . . . . . . . . . . 25
4.4 Special Revenue and Debt Service Funds . . . . . . . 26
SECTION 5 RESERVE POLICIES
5.1 Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . 28
5.2 Types of Reserves . . . . . . . . . . . . . . . . . . . . . . . 28
SECTION 6 CAPITAL IMPROVEMENT FUNDS
6.1 Citizen Participation . . . . . . . . . . . . . . . . . . . . . . 33
6.2 Capital Improvement Policy . . . . . . . . . . . . . . . . . 33
6.3 Capital Improvement Program . . . . . . . . . . . . . . . 34
SECTION 7 DEBT POLICIES
7.1 Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . 35
7.2 Authorization for Municipal Borrowing . . . . . . . . . 36
7.3 Conditions for Using Debt . . . . . . . . . . . . . . . . . . 37
7.4 Debt Indicators and Target Levels of Debt . . . . . . . 37
7.5 Sound Financing of Debt . . . . . . . . . . . . . . . . . . . 39
7.6 Financing Methods . . . . . . . . . . . . . . . . . . . . . . . 39
SECTION 8 CASH MANAGEMENT AND INVESTMENT POLICY
8.1 Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . 40
8.2 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
8.3 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
8.4 Delegation of Authority . . . . . . . . . . . . . . . . . . . 40
8.5 Prudence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
8.6 Eligible Investments . . . . . . . . . . . . . . . . . . . . . . 41
8.7 Reporting and Review . . . . . . . . . . . . . . . . . . . . . 42
8.8 Ethics and Conflicts of Interest . . . . . . . . . . . . . . 42
8.9 Policy Revisions . . . . . . . . . . . . . . . . . . . . . . . . . 33
SECTION 9 ECONOMIC DEVELOPMENT POLICY
9.1 Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . 43
9.2 Role of the City of Fort Collins . . . . . . . . . . . . . . . 43
9.3 Role of the Private Sector . . . . . . . . . . . . . . . . . . 45
9.4 Role of Outside Entities . . . . . . . . . . . . . . . . . . . 45
GENERAL
1.1. OVERVIEW
The Budget represents the process by which financial policy is, made,
implemented and controlled. For the City of Fort Collins, direction for the annual
Budget emanates from many distinct sources. The State Constitution and the
City Charter provide the basic legal requirements and time lines for the process.
Council goals, ordinances and resolutions provide additional direction and
respond to the needs of the community. Specific financial policies are also
found in capital improvement plans, in grant applications, and in administrative
documents.
The Financial and Management Policies are a compendium of all City policies
that shape the annual Budget. They are intended to assist the Council and the
City Manager in preparing the annual Budget and help communicate to
residents and customers how the community goals are being addressed.
1.2. REVENUE AND EXPENDITURE LIMITATION
In 1992, voters approved an amendment to the Colorado Constitution that
places limits on revenue and expenditures of the State and all local
governments. Growth in revenue and expenditures is limited to the increase in
the Denver-Boulder Consumer Price Index plus local growth (new construction
and annexation). This percentage increase is added to the preceding year's base
budget, giving the dollar limit allowed for revenue and expenditures in the
current year. Any revenue collected over the dollar limit must be refunded to
the citizens, unless it is offset by a voter-approved revenue change. Under the
amendment, Federal grants or gifts to the City are not included when
calculating the City's spending base. City "enterprises" (the Light and Power,
Water, Wastewater, and Stormwater Utilities) are exempt from the imposed
limits.
1.3. BUDGET SUBMITTAL AND PRESENTATION
On or before the first Monday in September of each year, the City Manager
shall submit to the City Council a proposed budget for the ensuing budget year
with an explanatory message. The proposed budget shall provide a complete
financial plan for each fund of the City. It shall also include appropriate financial
statements for each type of fund showing comparative figures for the last
completed fiscal year, comparative figures for the current year, and the City
Manager's recommendation for the ensuing year.
1
The budget estimates are open to the public for inspection and copying. Within
ten days City Council sets times for public hearings, at which time the public
may comment upon the proposed budget. Before the last day of November of
each year, the Council shall adopt the budget for the ensuing fiscal year.
The City of Fort Collins is committed to presenting a sound financial plan
for operations and capital improvements within growth limit guidelines. To this
end, the City utilizes conservative growth and revenue forecasts and:
• Prepares separate five-year financial plans for operations and capital
improvements;
• Allows staff to manage the operating and capital budgets, with City
Council deciding allocations in both;
• Adopts financial and management policies which establish guidelines for
five-year financial plans;
• Establishes target budgets yearly for all funds based upon adopted
policies;
• Appropriates the next year's annual budget in accordance with the City
Charter and State Constitution;
• Adjusts the annual budget to reflect changes in the local economy,
changes in priorities, and receipt of unbudgeted revenues;
• Organizes the budget so that revenues are related to expenditures as
much as possible;
• Provides department managers with immediate access to revenue and
expenditure information for controlling their annual expenditures against
appropriations;
• Utilizes a performance measurement system for all activities in the City;
• Evaluates recommendations which have a budget impact in light of
annual appropriations and five-year financial plans.
2
1.4. BUDGET PROCESS AND PHILOSOPHY
a. Charter Requirements
The City Charter requires a budget to be adopted for the ensuing fiscal year
"before the last day of November of each year." A single appropriation
ordinance is presented to Council in October of each year, containing the
appropriations for all City funds for the ensuing year.
b. Basis of Accounting
The accounts of the City are organized on the basis of funds and account
groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues, and
expenditures or expenses.
In Governmental Funds (General Fund, Special Revenue and Debt Service
Funds, and Capital Projects Funds), the modified accrual basis of accounting is
used. Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the accounting period
in which the liability is incurred.
In Proprietary Funds (Enterprise Funds and Internal Service Funds), the accrual
basis of accounting is used. Revenues are recognized in the accounting period
in which they are earned and become measurable. Expenses are recognized in
the accounting period incurred.
Although classified as Special Revenue Funds for budgetary purposes, the
City's General Employees' Retirement and Police Pension Funds are classified
as Trust and Agency Funds for Accounting purposes. The Fire Pension Fund is
shown in Other Governmental with Poudre Fire Authority. Trust and Agency
Funds are used to account for assets held by the City in a trustee capacity, or
as an agent for others. Revenues and expenditures in these funds are
recognized on the basis consistent with the fund's accounting measurement
objective. For Pension Funds, the accrual method of accounting is used.
C. Budget Preparation
While the Charter establishes time limits and the essential content of the City
Manager's proposed budget, the budget preparation process is not prescribed.
The preparation process is developed by the City Manager with input from the
City Council
3
The City's Financial Policies and issues are consistently addressed during the
budget preparation process with input coming from a variety of sources. A
Budget Issues Team composed of the City Manager, Deputy City Manager,
Administrative Services Director, Finance Officer, and the Budget Director
develops the guidelines to be used for budget preparation. A Budget Review
Gernmittee with Feffesentatives fFeFR three se. A- is used te vy
guidelines. In addition, the budget process is reviewed with user groups made
up of representatives from every department/division within the City. The
Executive Lead Team reviews the budget recommendations at various points
during the preparation process.
The constitutional growth limits, as well as available resources, limit budget
appropriations. In March, departments develop five year revenue projections of
their revenue sources and submit them to the Budget and Research Office. The
Budget Office also coordinates collection of information about the costs of
providing services from the departments.
Based upon revenue and growth limit projections, the costs of providing
services, and direction provided by Council about major revenue sources, the
Budget Office staff prepares target budgets for each fund and program. All of
this information is compiled into the Budget Manual which provides the basis
for the development of each program budget. Departments begin developing
budgets in April.
In May and June, prior to receipt of budget proposals from departments,
Council work sessions are held. At these sessions, policy issues are discussed
and Council has the opportunity to provide direction for development of
departmental budgets.
In June, budgets are due into the Budget Office. All funds are expected to stay
within their corresponding targets. Departments may shift resources between
programs. Budget issues are reviewed and the City Manager's proposed
budget is submitted to Council in late August. It is made available to the public
at the same time. In September and October, two Public Hearings on the
budget are held at the regular Council meetings. The City Manager solicits
additional discussion and policy direction from Council at two work sessions
held in September and October. If necessary, the Council may schedule
additional work sessions and may also direct that community budget meetings
be held.
The budget for the ensuing year is adopted in November. Following the
passage of the Budget Ordinance, the Final Adopted Budget document is
printed.
4
d. Changes to the Adopted Budget
1. Budget Increases
Funds are expected to confine spending to amounts appropriated during
the Budget process. In certain cases, however, appropriations may be
increased during the budget year.
0 Carryover Encumbrances - If a department has open purchase
orders at year end, related appropriations are encumbered and
carried over to the next year to cover the actual expense when it
occurs.
• Unanticipated Revenue - If a fund receives revenue during the year
from a source that was not anticipated or projected in the Budget,
such as a grant or a bond issue, such revenue may be
appropriated by Council for expenditure in the year received
provided the appropriation does not exceed the growth limit.
• Prior Year Reserves - In cases where a fund's reserves are greater
than required by policies or where prior productivity savings exist
in the General Fund, Supplemental Requests may be funded, with
Council appropriating amounts from reserves to fund items which
were not included in the adopted budget. Council may also
appropriate reserves in case of an emergency or unusual
circumstances, if it determines that such appropriations are in the
best interests of the City.
2. Budget Decreases
Annual budgets may also be decreased below adopted appropriations
during the year. Changes in service demand, economic conditions,
projected growth limits, and Council goals and direction may cause such
budget reductions. Each service area is responsible for developing a plan
to reduce appropriations. Each plan must be in place and ready for
implementation should the need arise. If the City Manager directs budget
reductions, Council will be informed immediately and the appropriations
will be set aside through administrative action. While this administrative
action does not lower the appropriations within a fund, expenditures are
prevented. If the circumstances leading to the implementation of
reductions change, the appropriations may be made available for
expenditure.
5
e. Level of Control and Budget Transfers
Control of expenditures is exercised at the fund level. Fund managers are
responsible for all expenditures made against appropriations within their fund,
and can allocate available resources as they deem appropriate. There are two
general types of budget transfers:
1 . Within Fund - This is a transfer between line items and/or departments
within a fund, and requires approval of the fund manager.
2. Between Funds - This type of transfer requires the Recommendation of
the City Manager and formal action by the City Council.
In order to provide City Council with information and control over capital
improvements taking place within the City, Council approval is also
required to transfer appropriations between Capital Projects. This is
normally done in cases where a project is completed under budget and
Council wishes to use the unused appropriations to enlarge the scope of
another project.
f. Lapsing of Appropriations
Per the City Charter, any appropriations which are unspent at the end of the
year lapse into fund balance, where they cannot be spent unless appropriated
by Council with the following exceptions:
1 . Capital Projects - Appropriations for Capital Projects do not lapse until
the project is completed and closed out.
2. Grant Funds - Appropriations funded by federal or state grants do not
lapse until the grant expires, or the project for which the grant was
received is completed and closed out.
REVENUE POLICIES
2.1. REVENUE LIMITATION
Revenue growth is limited by the State Constitution to the combined increase
in the Denver-Boulder Consumer Price Index plus local growth (new
construction and annexation). The limit applies to all City funds with the
exception of Light and Power, Water, Wastewater, and Storm Drainage funds.
6
2.2. REVENUE REVIEW AND PROJECTION
The City reviews estimated revenue and fee schedules as part of the budget
process. Estimated revenue is conservatively projected for five years and
updated annually. To shelter the City from short-term decreases in any one
revenue source by maintaining a diversified and stable revenue system is a
primary goal of the City of Fort Collins. The City of Fort Collins imposes a
number of miscellaneous licenses, fees and taxes, which are reviewed annually
in conjunction with the Revenue Policy, to determine rates and fee schedules
for the ensuing year.
2.3. FEE POLICY
As a home rule municipality, the City of Fort Collins has the ability to determine
the extent to which fees should be used to fund City services. This Policy
identifies the kinds of services for which fees could be imposed by the City and
establishes a uniform method for determining the appropriate percentage of
costs to be recovered through such fees.
a. Cost of Service
The amount of a fee should not exceed the overall cost of providing the service
for which the fee is imposed. In calculating the cost of a service, direct and
indirect costs are included. That is:
1 . costs which are directly related to the provision of the service;
and,
2. support costs which are more general in nature but provide
support for the provision of the service.
b. Percentaae of Cost Recovery
The extent to which the total cost of service should be recovered through fees
depends upon the following factors:
1 . The nature of the services. When a service is proprietary in
nature, rather than governmental, a higher level of cost recovery
is warranted. Governmental services are those which are provided
by the City for the public good such as regulating land use,
maintaining streets, and providing police and fire services.
Proprietary services are those which are provided for the benefit
and enjoyment of the residents such as parks and recreation
services.
7
2. The nature and extent of the benefit to the fee pavers. When a
particular service results in substantial, immediate and direct
benefit to fee payers, a higher percentage of the cost of providing
the service should be recovered by the fee. When a particular
service benefits not only the fee payer but also a substantial
segment of the community, lower cost recovery is warranted.
3. The level of demand for a Particular service. Because the pricing
of services can significantly affect demand, full cost recovery is
more appropriate when the market for the services is strong and
will support a high level of cost recovery.
4. Ease of collection. Although it may be determined that a high level
of cost recovery is otherwise appropriate for a particular service,
it may be impractical, too costly from an administrative point of
view or too burdensome for users of the service to establish such
a cost recovery system.
C. Establishment and Modification of Fees and Charges
The City Council will determine by ordinance:
1 . the services for which fees should be charged;
2. the level of cost that should be recovered through fees according
to the criteria established in this Policy;
3. an appropriate method for apportioning the cost of providing each
service among the users of the service; and,
4. a procedure for periodically reviewing and modifying the amount
of fees in order to maintain appropriate cost recovery levels.
Fee amounts will be established on an annual basis and submitted to the City
Council for approval by resolution.
d. Waivers. Rebates. Deferrals and Other Exceptions
If the amount of a particular fee is considered to be too high to accommodate
the needs of particular segments of the community and the public interest
would be served by adjusting the amount or manner of payment of such fees
in particular instances, the City Council may establish, by ordinance, programs
for waiving, rebating, or deferring payment of the fees.
8
2.4. SALES AND USE TAX DISTRIBUTION
The City's Sales and Use Tax totals 3.00 cents, developed as follows:
1968 - General City uses 1 .00
1980 - General City uses 1 .00
1982 - General City uses .25
1989 - Street Capital Maintenance .25*
1990 - Choices 95 Capital Improvement Program .25*
1993 - Natural Areas .25*
3.00
*Excluding sales of grocery food.
Revenue generated by the Sales and Use Tax will be distributed, based on
adopted budgets, in the following manner:
TAX ON ALL SALES & USES: 2.25 cents
• Fixed Dollar Amounts
Annual Debt Service
Fort Collins/Loveland Airport Authority
Sales & Use Tax Debt Service Reserves
Street Oversizing
• General Fund
Actual Sales and Use Tax revenue generated by the 2.25 cent tax
in excess of the fixed dollar amounts listed above, will be
transferred to the General Fund.
Actual Sales and Use Tax revenue generated by the 0.25 cent tax
for Street Capital projects will be transferred to, and be retained
in the Capital Projects Fund for repair and maintenance of existing
streets (92% to Capital Projects and 8% to the Transportation
Fund).
Actual Sales and Use Tax revenue generated by the 0.25 cent tax
for the Choices 95 Capital Improvement Program will be
transferred to, and retained in, the Capital Projects Fund for
construction of projects approved during the Choices 95 process.
With this pay-as-you-go program, no debt will be incurred to
complete projects.
9
Actual Sales and Use Tax revenue generated by the 0.25 cent tax
for the Natural Areas Capital Program will be transferred to, and
retained in, the Capital Projects Fund for the acquisition,
construction, enhancement and maintenance of trail systems,
wildlife habitat, and other natural areas to benefit the citizens of
the City of Fort Collins.
2.5. PRIVATE CONTRIBUTIONS
The City encourages the solicitation of private contributions. These services
and programs represent an "extra" that the City has been able to provide to
residents. In times of revenue constraints the City may not be able to provide
the same level of service without additional support. Therefore, efforts should
be made to secure private contributions in support of these programs and
services, as these contributions are an integral part of their successful
operation. With respect to Article X, Section 20 of the State Constitution, the
City will make a determination as to whether a contribution is a gift and is
therefore excluded from constitutional limits.
FINANCIAL ADMINISTRATION
3.1. ADMINISTRATIVE CHARGES
The Charter states that expenses for departments rendering services to other
departments shall be equitably apportioned. For Enterprise, Internal, and Special
Revenue Funds, direct charges are made to the funds receiving services when
they are rendered. Certain departments within the General Fund provide
services to all funds and do not have a direct billing mechanism. For these
General Fund departments, a cost allocation formula has been developed to
apportion costs to other funds and provide offsetting revenue to the General
Fund.
GENERAL FUND DEPARTMENTAL COSTS TO BE ALLOCATED
Departmental costs to be allocated are based on the current year's budget and
on projected employment levels. The current year is the one immediately
preceding the year being budgeted.
The amount to be allocated includes the budget expenditures for City Council,
City Manager, City Clerk, and City Attorney. The full amount of budgets for the
Human Resources department is included. The Finance department budget is
reduced by the amounts reimbursed by the Utility departments, an amount
linked to Special Improvement District administration, and Rebate Program
10
administration. The Information & Communication Systems (ICS) department
budget is adjusted for amounts corresponding to support for the departments
listed above.
HOW COSTS ARE ALLOCATED
The Human Resources costs are allocated in proportion to the total number of
budgeted full time equivalent positions within a fund.
Except for ICS, all other General Fund administrative costs are allocated to the
funds based upon corresponding revised budgets for the current year with some
additional adjustments. These adjustments recognize the lower amount of
administrative service required by Capital, Debt Service, and Purchased Power
payments. Capital project costs are reduced by two-thirds of their budgeted
amount and Debt Service payments are reduced by three-fourths. Purchased
Power is also deducted from the Light & Power budget.
The administrative costs for ICS are allocated through a two-stage formula.
First, ICS determines what their charges will be for each particular service
performed for departments, then ICS determines the charges to each
department based on which services are provided.
ALL FUNDS RECEIVE ALLOCATIONS BUT NOT ALL FUNDS CHARGED
While Administrative Charges are allocated among all City funds, only specified
funds are charged. Charges are not made to a fund if it is not self-supporting,
it is an Internal Service fund, or if the funds role is merely to facilitate proper
accounting procedures. For example, the Sales and Use Tax fund and Debt
Service fund receive amounts which are then transferred to other funds.
Charging these funds would lead to double charging many transactions and
would not correspond to the level of service provided by the departments in the
General Fund.
ANNUAL REVIEW
During each annual budget process, the Administrative Charge calculation will
be reviewed. Further refinements in the allocation formulas will be made as
needed to assure that the equitable apportionment requirement of the Charter
is met.
3.2. PAYMENT IN LIEU OF TAXES (PILOT)
In accordance with the City Charter regarding municipality rates and finances,
the water, wastewater, and electric utilities "pay into the General Fund in lieu
11
of taxes on account of the city-owned utilities such amount as may be
established by the Council by ordinance".
The PILOT rate, as established by Council is 5% for the Water and Wastewater
Utilities, and 6% for the Light and Power Utility. This rate is applied to the
operating revenues per year for each utility. The established PILOT rate is
approximately one and one-half (1 .5) times the franchise and property tax
amounts that a utility would pay if privately owned.
3.3. LEASE-PURCHASE
The City of Fort Collins uses lease-purchase financing for the provision of new
and replacement equipment, vehicles and rolling stock in order to ensure the
timely replacement of equipment and vehicles. This method may also be used
to acquire real property. Members of management staff have developed an
equipment needs schedule for rolling stock which encompasses the demands
of operating departments. This schedule is used to project equipment needs for
each budget year.
The type of lease that the Gi! uses is ♦e ed a Adit' al ale _ le
e.ffeet a puFehase atheF than nial e.f ., Ft�- The City leases... Pays-f )F the
asset in installments according to a fixed payment schedule. Each installment
includes principal and interest and the City builds equity and assumes risk in the
asset over the term of the lease. The annual installments are appropriated by
the Council each year.
Advantages of lease-purchase financing over the traditional cash method of
financing are:
• Decreasing the impact of inflation on the purchase of new and
replacement equipment.
• Resolving the problem of a capital replacement needs backlog.
• Conserving operating reserves.
• Reducing the initial impact of the cost to user department by enabling
acquisition costs to be spread over the useful life of the equipment.
0 Safeguarding the opportunity to use cash assets to earn higher interest
than the interest cost of lease-purchasing.
12
It should be noted that the City is able to discontinue the equipment leases at
its discretion so that future City Councils will have the option to continue or
discontinue the policy of lease-purchasing City equipment.
According to State of Colorado House Bill 90-1164, local governments are
required to identify as part of their budgets: 1 ) the total expenditures during the
ensuing fiscal year for all lease purchase agreements involving real and personal
property; 2) the total maximum payment liability under all lease purchase
agreements over the entire term of the agreements, including all optional
renewal terms.
We recognize that the State does not include lease purchase in the legal
definition of debt, however rating agencies include lease purchase financing in
calculating the City's debt burden.
3.4 HUMAN RESOURCE MANAGEMENT AND PRODUCTIVITY
The City of Fort Collins' goal as an employer is to attract and retain quality
employees in recognition of their essential contribution in providing services to
the citizens of Fort Collins. As a provider of services in the community, the
experience, commitment and talent of our employees is critical to the quality
and value of City services.
The City has two financial policies which address the human resource
component of its cost of providing services:
a. Employee Compensation Policy
In order to attract and retain quality employees and also to recognize and
reward quality performance, the City has established a system which
guides the compensation of its employees. The objective of the
compensation policy is to pay employees fairly, competitively and in a
way that is understandable to the community and the organization.
For all employees who represent the long-term, career work force of the
City, compensation will be set through a total compensation
methodology. Total Compensation is defined as the sum of the salary
paid and the City's cost for benefits which are provided to compensate
an employee for work performed. This method will use annual surveys
of the relevant labor market. The labor market will be defined as that
which most closely approximates the competitive market from which the
City hires its employees from specific job groups. This market will be
primarily within Northern Colorado and represent a mix of public and
private employers, to the greatest extent possible.
13
Hourly, seasonal, and temporary employee compensation rates will be
set according to the prevailing market for that type of employee within
the Northern Colorado market. These employees are valuable resources
in the provision of services in the community, so the City will set these
compensation rates in a way which will attract high quality employees.
b. City Performance Goals and Measures Policies
The goals of the City of Fort Collins are to provide our citizens with
services which are above average in quality and below average in cost,
and to provide those services with fewer than the average number of
employees, as measured against comparable municipalities. In addition,
the City wishes to attract and retain quality employees and also to
recognize and reward quality performance.
To accomplish these goals, the City will:
1 . subject to such'! tTthar ;butlgsta'ry requsrements as ►nay be,
.......
determinetl by the Connell 'set the City's Total Compensation for
all employees, except hourly, seasonal and temporary employees,
at a level which will be, on average, 4.5% higher than the median
for comparable positions in the relevant labor market. All jobs for
such employees, from the lowest paid to the highest paid, will
retain the same relative competitive position when compared to
other governmental agencies and private employers to ensure
equity to all employees within the compensation plan.
This policy shall be supported annually by data that demonstrates
that the productivity of the organization is higher than other
comparable organizations. The Council Finance Committee will
review the survey methodology and data annually with the
Personnel Board to ensure that the intent of this policy is being
met.
2. Maintain staffing levels lower than the average for other
municipalities providing similar services;
3. Measure and quantify customer satisfaction with the quality of
services provided by the City and continuously improve the quality
of those services;
4. Continue to monitor the cost effectiveness of providing services
through City operations in comparison to the cost of providing the
services through the private sector;
14
5. Continue to monitor the cost effectiveness of adding additional
staffing to provide services in comparison to the cost of adding
capital equipment or employing other options to streamline
operations; and
6. Measure the productivity and effectiveness of the City's work
force.
3.5. MEDICAL INSURANCE AND RETIREMENT PLAN
a. Medical Insurance
The City of Fort Collins entered into a partially self-funded medical
insurance program in October 1981 . This program allowed the City to
cut out profit paid to a private carrier, invest available money (at higher
rates), and maintain better cash flow. The initial savings were as high as
expected and the program continues to provide a cost effective and very
desirable employee fringe benefit.
The partially self-funded insurance program is enhanced by a consortium
of cities to collectively bid administrative services, stop-loss insurance
for unexpected emergencies, and life and accidental death and
dismemberment insurance, resulting in lower rates.
b. Retirement Programs
The City of Fort Collins contributes to six types of pension plans,
including:
1 . Social Security
2. Police Money Purchase
3. Fire Money Purchase
4. General Employee Retirement Defined Benefit
5. Old Hire Fire Defined Benefit
6. Management Money Purchase
The Fire and General Employee Retirement Plans are administered by the City
of Fort Collins. The rate of contribution for the City administered plans is based
upon an annual actuarial analysis for the normal cost and unfunded liability of
the number of employees participating in each pension plan. The General
Employees Retirement Committee has identified inequities among the City-
administered plans. The Committee's recommendations will be presented to
Council in the next year and adjustments to the policies will be made at a later
date.
15
The City's current pension plans consist of the following provisions:
0 The City will maintain contribution rates at a level sufficient to meet all
current normal costs of each pension plan;
• Any unfunded liability incurred by individual pension funds will be
amortized over a period not to exceed twenty years;
• A thrift plan for City employees is an adjunct to the general employee
retirement plan, to maintain comparability with benefits provided by
other Front Range communities. Employees participation in this plan is
optional.
• A money purchase plan is offered to City Police and Poudre Fire
Authority employees who do not belong to Social Security.
• Money purchase plans are offered to management level employees who
are also covered by Social Security.
The Budget incorporates the following rate requirements to continue this policy:
SOCIAL EMPLOYEE POLICE & FIRE MGMT.
SECURITY GENERAL THRIFT MONEY PURCHASE MONEY
NORMAL COSTS CONTRI. EMPLOYEE PLAN PLAN PURCHASE
PLAN
City Contri. 7.65% 3.553% 3% 8%
3%-10%
Employee Contri. 7.65% -- 3% 8%
---- ------ ---- ---- ----
TOTAL 15.3% 3.553% 6% 16% 3%-10%
3.6. BUILDING MAINTENANCE COSTS
Maintenance has been classified into three categories:
1 . General i MAINTENANCE, REPAIR, & REPLACEMENT (MRR)
A.:;PR1 vENTIVE: The upkeep of buildings acid equipment to realize z..heir
anticipated useful life includes periotllc actions to assure
continued service,: oi)eratio.nal effclency, , or prevent
__.: 1.
breakdowns.
................................................................................................................
16
B. REPAtR7REPLACEMENT Actions needed to' rest buldtn.,g
systems/cnmpu OP,
nts to a'! funcxrona
condrt1on Per:forrn;ed wkre.n
..................................................................................................................................
..................................................................................................................................
systernslcomp6.nents iltmv.. reached ;the;r
useful life, became absralete, :pre maturely
wo rn put, nr have faUe, :
2. Renovation: ALTO ATIbNS
.............:...................................................
..................................................................
Actions which make changes#o the mterin ;arrangement of an existing facility or
1. 'affledi. qulpmer for mnre aff CUW use or adaptla Ito a nsw t�se Inoludes tvnrk
referred to as provements, conyersions� remq els, or mhtlernizat1or�. May be
either {al mmnr ar {bl ma)of,
b. Majer
3. Replacement:: CONTRUCTIt7N
Wbf1 which prov^a * .a-new building nr addjs onto an existing building.
Priorities associated within the categories have also been established:
• Life, Health, and Safety
• Repair
• Protecting Capital Investment
• Quality/Enhancement
These categories and priorities are used as the basis for funding
recommendations in the annual budget process.
3.7. POUDRE FIRE AUTHORITY - REVENUE ALLOCATION FORMULA
In December of 1981 , the City and the Poudre Valley Fire Protection District
created the Poudre Fire Authority (PFA) through an intergovernmental
agreement. The PFA provides fire protection services to Fort Collins and the
surrounding area. The agreement specifies a Revenue Allocation Formula (RAF)
for defining the City's contribution to the PFA for operations and maintenance.
For PFA's operating costs, the City shares property tax and sales and use tax
collections. In addition to operating costs, the agreement further provides
authorization for the PFA to request funds for capital costs pursuant to the
procedures set by the City and District. PFA's capital needs include land
acquisition, construction of additional stations, and acquisition of major fire
fighting apparatus.
The RAF has served as the Poudre Fire Authority's funding mechanism from
1981 through the 1993 budget. Passage of Amendment No. 1 (on November
17
3, 1992), a revenue and spending limitation to the state constitution, requires
review and revision of the Revenue Allocation Formula. In its original form, the
Revenue Allocation Formula allowed the PFA to realize the full extent of growth
in sales and use tax and property tax collections. Article X, Section 20 of the
State Constitution now limits the rate of growth to a combination of the
Denver-Boulder Consumer Price Index and additions to the local property tax
base primarily due to construction and annexation. Accordingly, the Revenue
Allocation Formula for the City's contribution to the PFA has been restructured
to fit within the constraints of Article X, Section 20.
The City will continue its current policy of funding PFA capital needs by
dedicating one mill of the City's total mill levy. The revenue from the dedicated
mill will be managed according to the property tax mill levy and revenue
limitation provisions of Article X, Section 20. The City's contribution to PFA for
operation and maintenance will be calculated by the Revenue Allocation
Formula. The Revenue Allocation Formula allocates to PFA 67.09% of the
property tax mills available for operations and 0.303 of one cent of the City's
2.25 cent sales and use tax applicable to all taxable sales and uses. The
resulting contribution for operations and maintenance will then be compared to
the constitutional growth limits. The City's operation and maintenance
contribution to PFA will be the lesser of the contribution as determined by the
Revenue Allocation Formula or the allowable contribution in accordance with
the limits imposed by Article X, Section 20 of the State Constitution.
3.8. REBATE PROGRAMS
The City recognizes that certain segments of its population, specifically the
disabled and senior citizens on fixed incomes, may be unable to keep pace with
increasing taxes and utility costs. In an effort to partially offset the cost of
property taxes, utility billings and sales taxes on these segments of its
population, the City has established several rebate programs, as follows:
Property Tax and Utility Charge Rebate Program
These programs provide financial assistance to disabled residents and senior
citizens, in the form of an annual rebate on property tax and utility charges,
who qualify under residency and income guidelines.
Sales Tax Rebate on Food Program
The City recognized the regressiveness of the sales tax on food and specifically
excluded the sale of grocery food when enacting a voter-approved 0.25 cent
Sales and Use extension for street maintenance on July 1 , 1989 and the
extension of a 0.25 cent tax for the Choices 95 Capital Improvement Program
18
effective January 1, 1990. The sale of grocery food was also excluded from
the voter-approved 0.25 cent Sales and Use Tax for natural areas effective
January 1, 1993.
In addition to these measures, the City has a Sales Tax Rebate on Food
Program. This program provides for an annual rebate to members of qualifying
households on the basis of residency and income guidelines.
GOVERNMENTAL AND PROPRIETARY FUNDS
4.1. GENERAL FUND
The General Fund is the largest and most diverse of the City's operating funds.
It includes all resources not legally restricted to specific uses. The major source
of revenue to the General Fund is sales & use tax, which accounts for
approximately 56% of the revenue. Local property tax and Lodging Tax are also
included, as are revenues derived from fees for services and materials, licenses,
permits, and fines.
Service Productivity Incentive Policy
This Policy provides incentives for General Fund managers to improve planning
and delivery of services. General Fund managers need a means by which to
save unspent annual appropriations that result from increases in productivity.
Without an incentive policy, managers tend to spend savings on short term
needs rather than long-range service improvement. This policy creates
incentives to more closely examine spending decisions and to consider program
related savings before requesting additional General Fund resources.
Prudent cost-effective service delivery requires long range planning of both
costs and resources necessary to provide the service. This Policy provides a
framework within which managers can develop strategic plans ratherthan short
term, line item cost approaches. Allowing managers to save and use resources
from increased productivity emphasizes responsibility and accountability for
efficient service delivery. It further allows more flexibility for General Fund
managers, similar to the management conditions of enterprise funds.
Policy Structure
This Policy defines savings as unspent department or division level
appropriations which managers have not committed for future years.
Committed appropriations include encumbrances, unspent lease purchase, and
any planned reap pro priations.The Policy further requires that the savings result
from increased productivity in service delivery.
19
• Finance Department staff will adjust department or division
savings within a service area for any over spending by another
department or division within the service area.
• Finance Department staff will determine the department and
division annual savings after completing the annual financial
report.
The following criteria guide the use of carry-over savings and appropriations.
• The City Manager must review and approve requests for use of
savings.
• Increased productivity should generate the savings, rather than
decreases in services.
• Departments and divisions should use savings for the
improvement of future service delivery.
• City Council must approve, through an appropriation ordinance,
the request for use of savings.
• Annual General Fund revenue collections must be equal to or
greater than the projected budget revenue.
The eligible productivity savings shall be separately accounted for in a General
Fund designated reserve account. Requests for the use of accumulated savings
from prior year(s) held in this reserve can be made by the department or
divisions at any time during the year.
4.2. ENTERPRISE FUNDS
The City has five Enterprise Funds. These are Golf, Light & Power, Wastewater,
Storm Drainage, and Water. The Enterprise Fund classification has been used
to account for various services for which there exists a significant potential for
financing through user charges. Historically, services were accounted for in an
Enterprise Fund if financed more than 50% by user charges ( of the five
Enterprise Funds, all but the Golf Fund are also treated as "enterprises" within
the meaning of Article X, Section 20 of the State Constitution). In the 1993
Budget, all Enterprise Funds will recover 100% of their costs through the five
year projection.
The goal of all enterprise accounts is self-sufficiency. Toward this end, funds
which are not recovering at least 75% of costs shall incrementally adjust their
20
rate structures to achieve a positive income position. Those operations which
cannot achieve a positive income position within a five year time frame may be
accounted for as subsidized operations and not as Enterprise Funds.
a. Light & Power Utility
The financial policies of the Light & Power Utility are administered in
accordance with the City Charter. The budget/five year plan has been Is
prepared in compliance with the following:
1 . Mission Statement
MISSION: "Fort Collins Light and Power is a community owned
Electric Utility. We work with our customers to:
• Provide safe, reliable economical systems and services;
• Meet their needs as economic, environmental and technological
changes occur;
• Conserve resources; and
• Improve the quality of systems and services."
2. Electric Rates
Electric rates will be based upon the cost of service approach to reflect
full distribution of costs to appropriate rate classes in order to effect
equitable sharing of costs. Rates shall be established and maintained at
a level sufficient:
• To maintain positive net income after paying the full cost of
operating and maintaining the electric utility in good repair and
working order;
• To provide an operating reserve equal to 8% of budgeted
operating expenditures, excluding the cost of purchased power;
• To provide a future capital improvements reserve in an amount
equal to the average annual cost (excluding debt financing) of the
approved five-year capital improvement plan, considering any
changes which, from time to time, may be made in such plan;
• To provide a purchase power reserve up to approximately 25% of
the annual revenue from the sale of electrical energy. This reserve
shall be used to partially off-set, defer, or mitigate the impact of
purchase power cost increases due to factors such as federal
power issues
Rawhide power. Significant changes to the 25% level shall be
reported to the Council during the annual budget process.
21
3. Excess Retained Earnings
Priority for the accumulation of reserves and excess retained earnings
shall be as follows: reserves shall first be accumulated in the operating
reserve, second in future capital improvements reserve, third in the
purchase power reserve. After reserves are funded as specified in 2.
above, any excess retained earnings shall be added to the purchase
power reserve.
4. Operating Records
The Light & Power Utility will maintain a standard system of accounting
which shall, at all times, correctly reflect all financial operations of the
system and keep other such records and data as are generally used by
the electric utility industry.
The accounts of the Light & Power Utility shall be kept separate and
distinct from all other accounts of the City and shall contain
proportionate charges for all services performed by other departments as
well as proportionate credits for all services rendered to other
departments.
b. Water & Wastewater Utilities
Formally adopted financial policies are an important factor in planning the
financial operations of the Water and Wastewater Utilities. Policy statements
were developed and incorporated into the five-year financial plan as follows:
1 . Net Income
The Water and Wastewater utilities shall not have a significant net loss
after paying the full cost of operating and maintaining the utility plant.
Water and Wastewater utility rates shall be set at a level to provide for
the net income requirement.
2. Working Capital Reserves
The following reservations of working capital shall be established and
maintained in each utility in the following order of priority:
• Debt Service Reserve--equal to the amounts restricted for debt
service by bond ordinance.
22
• A-B Caoital Reserve--equal to the amount of bond proceeds
available and restricted for projects relating to the Anheuser-Busch
brewery.
• Operating Reserve--at least equal to 2% of the actual or projected
operating revenue for the year.
• Capital Reserve--equal to the amount of working capital available
after the above three reserves have been satisfied.
3. Capital Cost Financing
Capital cost will be identified as either:
• Minor capital--relatively small capital acquisitions such as vehicles,
lab equipment, or leasehold improvements; or
• Capital Projects--major additions, improvements, or expansions to
utility plant.
Financing for minor capital is through utility charges. Financing for capital
projects is provided through a combination of utility charges, long-term
debt financing (bonds, loans, etc.), and utility plant investment fees. In
addition, all or a portion of capital costs may be funded from federal or
state grants and other forms of contributed capital.
In addition, the Council has adopted a policy to comply with the water
metering act of the State of Colorado. In recognition of the fact that the
installation of water meters will generally reduce the demand for treated
water, thereby postponing the need for additional capital improvements
to meet the demands of new customers, the Council decided that the
cost of installing water meters for non-metered customers shall be
considered a "growth related capital expansion cost" which may be
funded with the proceeds of the water plant investment fee.
c Storm Drainage Fund
The primary purpose of the Storm Drainage Fund is to meet the public need for
effective stormwater management, including flood control, capital
improvements and the operation and maintenance of drainage facilities.
23
1 . Operation and Maintenance Requirements
Utility rates will be set at a level to provide for the operation and
maintenance requirement for each fiscal year. The rate is based on the
category of land usage and a per square foot per month rate.
2. Capital Project Needs
A master plan has been developed for each basin to identify drainage
needs, set fees, and determine capital improvement requirements. In the
effort to balance stormwater risk and liability, a 20-year Stormwater
capital program has been developed that relates to the system
requirements of each basin where a positive cost/benefit ratio exists.To
finance this capital program, a one-time basin fee is collected with new
development and a monthly capital fee from property owners.
3. Capital Cost Financing
The financing of capital improvements will be accomplished through the
following:
• a one-time basin fee that is collected with new development;
• monthly capital fee collected from property owners;
• bond issues that will be financed over the life of the improvement.
The annual debt service will be provided from the existing monthly
capital fees.
4. Reserves
The following reserves have been established:
• Capital Reserve - equal to the amount of bond proceeds, monthly
capital fees, and one-time new development fees available at the
end of one fiscal year to be expended in the next fiscal year;
• Ooerating Revenue Reserve - equal to 2% of the projected annual
operating revenue;
• Debt Reserve - equal to the amount required by the individual
bond ordinance.
24
4.3. INTERNAL SERVICE FUNDS
Internal Service Funds me used acco.utbt for
^ n.....b ^^' ^":" certaEn support services', prouide.:d to atier funds anti
external agencies. ' ..
.sin ghar es to the Users qfi the rservices they recover
ie
9
their ;costs The t Inance :Department may recommend !:the creatianw
continUat�on, ;ar ending Use of an internal service fund ;based an documented
cusf.:rrier needs and financial benefrts! The City now;operates four internal
Benefits Fund,
Communications Fund, Equipment Fund, and the Self Insurance Fund.
The 1merna) gervice Funds operate under the following, guidelines;
+ Acgoursting guidelines limit internal seruice fund Charges m the recovery
of the cost of the service, including depreciation, rather .than making a
profit. Bach fund's prior year fsnancw statements and est1.imates of
future costs form the basis for the calculation of charges:
+ Fund managersshquld set charges at ajeuel to avoid adverse #inancia.l
impacts on their customers. Fund customers an'tl independent experts.
review.'and make recommendations about the 1'euel pf ehargest The.
Budget', Office coordinates this analysis; as part of the annual budget
process*
+ Internal servicefunds should compete with similar services offered by
the private sector.4be, City staff will compare rates each year.'if not
competitive. rt.h the private sector, the Finance Department will analyze
whether the private sector should provide the service,
+ Internal serucefunsmyd Custer-abu mpproved master
plans and independent third-party actuarial reviews (for the Benefit and'.
Sel#-Insurance funds} guide the 'IeveI of reserves_ Fund managers may
spend reserves'only for their approved purpose.
+ TWO may biay equipment and facilities for the internal seruice(funds
through lease_purchase financing. Management s.' decision to
recommend lease purchase financing depends on- 1} cash fiiow needs
2} budget constraints 3} benefit to east analysis and 4} level of
reserves......................................................
...........................
* Iin ernal service funds operate under the same guidelines and canstraints
as the General Nhd and other governmental funds of the City.:
25
4.4. SPECIAL REVENUE AND DEBT SERVICE FUNDS
Special Revenue Funds are used to account for the proceeds of revenue
sources which are restricted by law or administrative action to expenditures for
specified purposes. Special Revenue Funds include Gemetery,lCultural Services
...............:................
& Facilities, Recreation, Transit, Transportation, and the City's Pension funds.
The Debt Service Fund is used for the payment of principal and interest on
long-term debts. The major source of revenue in the Debt Service Fund is the
Sales & Use Tax.
a. Cultural Services & Facilities Fee Policy
The Cultural Services & Facilities Fund shall budget to recover at least 40% of
its total cost in revenue generated through implementing the following policy:
1 . Total revenue from fees and charges shall cover a minimum of 55% of
Lincoln Center Operation and Maintenance and Performing and Visual
Arts Programming Budgets. This includes revenues generated at the
Lincoln Center from rentals, equipment, concessions and other
miscellaneous sources and all total direct revenues from the Performing
and Visual Arts Programming. A transfer from the General Fund will
make up the difference between total revenue and expenditures.
2. The Cultural Services and Facilities Administration and Museum budgets
provide minimal financial support. These programs are funded primarily
by a transfer from the General Fund.
3. Major capital improvements and renovations will be financed through
sources other than Cultural Services and Facilities Fund.
4. Solicitation of funds through donations, fund-raising events, and non-
traditional sources shall be encouraged by the City staff, Lincoln Center
League, the Cultural Resources Board and the City Council.
Funding collected for any special purpose shall be earmarked for that
purpose and those funds will be processed through the Fort Collins
Foundation.
b. Recreation Fund Fee Policy
The following fee policy for the Recreation Fund was adopted by Resolutiort90-
132 on September 4, 1990. The goal of the policy is to provide for a more
26
equitable distribution of the costs of recreational programs between program
users and General Fund tax dollars.
Fund Structure
Costs associated with the Recreation Fund shall be defined as either: 1)
Program Costs; or 2) Community Good Costs.
1 . Program costs are directly associated with the activities and facilities
used by the citizens, and include the following:
Activity Costs
• part time staff
• materials
• equipment
• participant transportation
• other costs directly associated with conducting activities
Facility Ooeration and Maintenance Costs
• minor repairs
• custodial equipment and supplies
• building utilities
• specialized items
• other operations and maintenance costs directly associated
with operating facilities
Fees and charges shall cover the cost of the direct program experience
and facilities used. The fees charged will not exceed the cost of the
specific activity in which a person is participating.
2. Community Good costs are those costs that are necessary to provide a
program but are not directly experienced by the user. Such costs
include the following:
• full time recreation staff
• office operation costs such as telephone and computer
charges
0 training costs
0 dues and subscriptions
0 insurance
0 office supplies and equipment
• other costs not directly experienced by the users
27
The General Fund shall cover "Community Good" costs. General Fund
will also cover deficits in programs that cannot recover all their costs
through fees. Generally, these are programs designed for special
populations where it is not feasible to cover the cost of participation.
Because costs that are defined as "Community Good" costs are
supported by the General Fund, they are subject to the same
operational guidelines as established for other General Fund budgets.
Reserves
• Scholarship Reserve - established to pay fees for participants who are
unable to afford full fees for programs; targeted at 3% of the program
cost portion of the fund; supported by the General Fund each year. .
• Operating Reserve - to be maintained at 7% of the program costs portion
of the fund, excluding one time capital items and lease purchase
payments
• Any excess fund balance will be distributed within the following
priorities: 1 ) maintaining operating reserves; 2) equipment and repair
needs; 3) capital needs; 4) new program needs.
RESERVE POLICIES
5.1. POLICY STATEMENT
The accumulation of reserves protects the City from uncontrollable increases
in expenditures or unforeseen reductions in revenues, or a combination of
the two. It also allows for the prudent financing of capital construction and
replacement projects.
5.2. TYPES OF RESERVES
The City of Fort Collins maintains reserves that are required by law or
contract and that serve a specific purpose. These types of reserves are
considered restricted and are not available for other uses. Within specific
funds, additional reserves may be maintained according to adopted policies.
All expenditures of reserves must be approved by Council. This may occur
during the budget process or throughout the budget year.
28
GENERAL FUND
A top priority goal of the Council is to improve the fiscal health of the City.
Annual revenue projections are conservative and authorized expenditures are
closely monitored. In stable economic times, the combination of these two
strategies leads to revenue collections higher than actual expenditures. The
net resources are then available to first fund the Restricted Reserve for
Emergencies required under Article X, Section 20 of the State Constitution
and then the designated reserves. Year-end balances in the designated
reserves may be used as a funding source in the next budget year. The
General Fund reserves are funded from net revenues each year as part of the
budget process to maintain them at appropriate levels.
a5g6:
gig<f eseKg
a. Restricted for Emergencies - this reserve is required under Article
X, Section 20 of the State Constitution. Therefore the use of this
reserve is restricted to the purpose for which it was established.
This reserve can be used for declared emergencies only. In 1993,
one percent or more of the City's fiscal year spending, less
bonded debt service, must be reserved, with two percent required
in 1994, and three percent for all later years.
All City Funds, excluding the Utilities, are required to maintain a
Restricted Reserve for Emergencies. For ease in accounting for
these reserves, each fund will contribute the required percentage
into the General Fund to be held in the General Fund Reserve for
Emergencies.The General Fund required percentage will be funded
from the existing Designated Reserve for Financial Uncertainty.
b Ftestncted for Affordable Housing this es8rva is restnGtied ;a
affordable housing use Each yearx City Ceaunc�I may appropriate
funds fOr affordabCe pausing puipases dunng C�ucJget adoption;'
C=[snds appropriated far the promotion of affardab[e hausirig anr!
tint expended during ;he year shall Copse ;a ;he Rffardadla
} ousin� ;Reserve;: Any appropriation (rani this reserve shall be
restricted: far the purpose of affarabie pausing.
29
Designated for Financial Uncertainty - this reserve is maintained
in the General Fund and is designed to provide orderly adjustment
to unforeseen reductions in revenues in the current year if
budgeted revenues are less than actual revenues and
expenditures, including encumbrances, are greater than actual
revenues.The minimum amount of money to be held in this
reserve should be approximately 3.5% of approved General Fund
operating expenditures.
If revenue shortfalls are measurable during the current budget
year, the Charter allows use of monies from this reserve to cover
authorized expenditures. Similarly, Charter authorized adjustments
may be made as part of the year-end closeout if additional monies
are needed to cover authorized expenditures. The City Manager
will notify the City Council when draws are made from this
reserve.
eb. Designated for Facilities Maintenance - this reserve provides for
deferred maintenance needs, major renovations, and repairs to
maintain the City's facilities as defined in the 1992 fixed asset
report. The level of the reserve is determined based on the value
of buildings and improvements as recorded in the Comprehensive
Annual Financial Report (CAFR) divided by an average asset life of
35 years.
The Facilities Maintenance Reserve is used during the current
budget year by a supplemental appropriation of prior year
reserves. Monies maintained in this reserve are also authorized for
expenditure in the annual budget.
CIO. Designated for Equipment Replacement Loans - this reserve
provides a revolving loan pool for the timely replacement of
operating equipment (vehicles, machinery, and computer
equipment). Operating managers may borrow from this loan pool
to "bridge" the period of time when the equipment is needed and
the next available lease/purchase package. Typically,
lease/purchase packages are assembled and presented to Council
twice a year. At that time, the principal amount of any loan from
this reserve will be repaid, plus interest at the prevailing rate.
30
ed. Designated for Productivity Savings-this reserve provides General
Fund managers the flexibility of long-range service planning
through the use of accumulated savings from increased
productivity in service delivery. The eligible productivity savings
held in this reserve are separately accounted for by the
department or division that generated the savings.
Requests for the use of accumulated prior year(s) savings can be
made to the City Manager at any time during the year. City
Council must approve,through an appropriation ordinance,the use
of the savings.
€e. Designated for Contingencies - this reserve provides for the
temporary financing of unforeseen opportunities or needs of an
emergency nature including increases in service delivery costs.
Monies held in this reserve may be appropriated during the current
budget year and may also be used for the ensuing budget years
as a revenue source if projected expenditures needed to maintain
appropriate levels of service exceed projected revenues. Of all
General Fund reserves, this is the most flexible. The amount of
money to be held in this reserve should not exceed 10% of the
approved General Fund operating expenditures.
The combined total of the designated reserves should not exceed 20°k of
the approved General Fund operating, expenditures. (NOTE; this
recammendation is the high end of'a rangefor year-end reserves from thz
State of Ca(orado financial handbook for local governments.) The target is
4 S0% This does not include the reserve Designated for Productivity Savings)
OTHER FUNDS
a. Operating Reserves operating reserves are held in Enterprise,
Internal Service, and some Special Revenue Funds. There are two
types of Operating Reserves:
1 . An appropriated contingency which provides for
unexpected or unanticipated expenditures during the year.
It is typically budgeted at an amount equal to 2% of the
annual operating budget by fund, but may be a fixed
amount depending upon available funds.
31
2. Revenue reserve of working capital is established to provide
for unforeseen revenue losses. If something happens to the
economy, there is flexibility without worrying that current
expenditures will exceed the total revenue available. The
revenue reserve is calculated at an amount equal to 2% of
projected annual operating revenue by fund. This revenue
reserve is not appropriated as part of the annual budget,
but may be utilized at the end of the fiscal year, if
necessary.
b. Capital Reserves - Capital reserves are established in order to
provide for normal replacement of existing capital plant and
additional capital improvements financed on a pay-as-you-go
basis. Debt financed capital improvements are, by definition,
financed by proceeds of bond issues and do not require capital
reserves. The amount of the reserve is determined by averaging
the dollar value of capital needs as shown in the Capital
Improvement Program.
A second type of capital reserve is appropriated capital
contingency, typically 5% of the amount annually appropriated for
capital construction, which provides for the conceptual study and
preliminary design of unanticipated capital improvements.
C. Debt Reserves - Debt reserves are established to protect bond
holders from payment defaults. Adequate debt reserves are
essential in maintaining good bond ratings and the marketability
of bonds.
The amount of debt reserves are established by bond ordinance in
association with each bond issuance.
The City Council may establish, upon recommendation of the
Financial Officer, supplemental Debt Service reserves in addition
to those expressly required by Bond Ordinance. Such reserves
shall not be deemed to confer any rights upon Bondholders over
and above those set forth in the Bond Ordinance for each bond
issue.
32
CAPITAL IMPROVEMENT FUNDS
6.1. CITIZEN PARTICIPATION
With Resolution 87-130, Council solicited citizen involvement and
participation in formulating a Capital Improvements Program known as
Choices 95. By this Resolution, a citizen committee was created to make
recommendations on the capital improvement needs of the community and
the financing of those improvements. The recommended Capital
Improvement Program was presented to Council by the Choices 95 citizen
committee along with a pay-as-you-go funding recommendation. The
Choices 95 citizen committee was instrumental in the determination of
projects and funding mechanism to be accomplished in the 1991-1997
Capital Improvement Program.
The residents of Fort Collins on March 7, 1989, approved the extension of
a 0.25 cent Sales and Use Tax rate (excluding grocery food) to finance the
Choices 95 Capital Improvement Program. This extension is effective for a
seven year period beginning January 1 , 1990. In addition, the residents also
approved the extension of 0.25 Sales and Use Tax rate (excluding grocery
food) to finance much needed resurfacing of the City's streets. This
extension is effective July 1 , 1989 and expires January 1 , 1997.
On November 3, 1992, the residents of Fort Collins approved a citizen
initiated ordinance creating a 0.25 cent Sales and Use Tax rate (excluding
grocery food) to finance the acquisition, construction, enhancement and
maintenance of trail systems, wildlife habitat and other natural areas to
benefit the citizens of the City of Fort Collins. This tax is effective for a five
year period beginning January 1, 1993 and ending December 31 , 1997.
6.2. CAPITAL IMPROVEMENT POLICY
With the exception of the Choices 95 Capital Programs, the City will
continue to operate under its existing Capital Improvement Policy:
• The City will develop a multi-year plan for capital improvements
and update it annually;
• The City will make all capital improvements in accordance with
the adopted Capital Improvement Program and the Capital Project
Management Control System;
33
• The City will identify estimated costs and funding sources for
each capital project requested before it is submitted to City
Council;
• The City will use intergovernmental assistance to finance only
those capital improvements that are consistent with the Capital
Improvement Plan and City priorities and whose operating and
maintenance costs have been included in the operating budget
forecasts.
6.3. CAPITAL IMPROVEMENT PROGRAM
The City's Capital Improvement Program includes the Capital Projects Fund,
the Conservation Trust Fund, and the Parkland Fund.
Capital Projects Fund
Projects within the Capital Projects Fund are classified as follows:
General City Capital Projects
• General Capital Projects
• Choices 95 Capital Projects
• Street Capital Maintenance
• Natural Areas
a. General City Capital Projects:
General Capital Projects include minor street repair, concrete program,
pedestrian access ramps, major building maintenance and other minorcapital
projects. General Capital Projects are financed by transfers from the
appropriate financing fund and can be financed through bond proceeds
and/or grant funds deposited directly in the Capital Projects Fund.
Choices 95 Capital Projects were recommended by the Choices 95 citizen
committee and approved by the voters of Fort Collins. The proceeds of the
0.25 cent Sales and Use Tax is specifically dedicated to finance these
projects.
Street Capital Maintenance consists of the Street Overlay and Sealcoat
Program. This program provides for repair and maintenance of existing
streets using cracksealing, patchings, sealcoats, overlays or reconstruction.
Council recognized the importance of maintaining existing City streets, and
the voters approved using 0.25 cent Sales and Use Tax revenue to finance
34
the projects. (92% of the revenues are allocated for street rehabilitation and
8% for minor street maintenance).
Natural Areas includes the acquisition, construction, enhancement and
maintenance of trail systems, wildlife habitat and other natural areas to
benefit the citizens of the City of Fort Collins. Revenues may also be used
to purchase water rights as needed or desired to maintain or enhance the
natural characteristics of areas acquired. The proceeds of the 0.25 cent
Sales and Use Tax is specifically dedicated to finance natural areas as
defined herein.
b. Utility Capital Projects:
Utility Capital Projects, specifically Stormwater, Wastewater and Water,
were in prior years also part of the Capital Projects Fund. Utility capital
projects are budgeted within the appropriate enterprise fund. Sources of
funding for utility capital projects are bond proceeds and specific fees and
charges.
C. Conservation Trust Fund Projects:
The Conservation Trust Fund provides for the receipt and expenditure of
revenue received from the Colorado State Lottery. The Lottery revenue
finances capital projects which relate to the acquisition and development of
open space and trails including associated administrative costs and charges.
Consistent with Colorado statutes, the operation and maintenance of
existing open space and trails may also be financed by these funds.
d. Parkland Fund Projects:
The Parkland Fund provides for the development of neighborhood parks, as
financed by a Parkland Fee. The Parkland Fee is collected from developers
for each new dwelling unit established within the City limits. The Parkland
Fund includes funds for the acquisition, development and administration of
neighborhood parks. The associated operation and maintenance costs are
included in the General Fund operating budget.
DEBT POLICIES
7.1. POLICY STATEMENT
The City of Fort Collins recognizes the primary purpose of capital facilities
is to support provision of services to its residents. Using debt financing to
meet the capital needs of the community must be evaluated according to
35
two tests - efficiency and equity. The test of efficiency equates to the
highest rate of return for a given investment of resources. The test of equity
requires a determination of who should pay for the cost of capital
improvements. In meeting the demand for additional capital facilities, the
City will strive to balance the load between debt financing and "pay as you
go" methods. The City realizes failure to meet the demands of growth may
inhibit its continued economic viability, but also realizes too much debt may
have detrimental effects. Through the rigorous testing of the need for
additional debt financed facilities and the means by which the debt will be
repaid, the City will strike an appropriate balance between service demands
and the amount of debt.
The City of Fort Collins uses lease purchase financing for the provision of
new and replacement equipment, vehicles and rolling stock to ensure the
timely replacement of equipment and vehicles and to decrease the impact
of the cost to the user department by spreading the costs over several
years. This method may also be used to acquire real property. The type of
lease that the City uses is termed a conditional sales lease, in effect a
purchase rather than a rental of property. The annual installments for all
leases are appropriated by the Council each year. For purposes of securing
credit ratings and monitoring annual debt service as a percentage of
operating expenditures; lease purchase financing is considered a long-term
liability of the City and therefore will be issued under the same conditions
as long-term debt.
7.2. AUTHORIZATION FOR MUNICIPAL BORROWING
The Charter authorizes the borrowing of money and the issuance of the
following securities to evidence indebtedness:
• short-term notes,
• general obligation securities,
• revenue securities,
• refunding securities,
• special assessment securities,
• tax increment securities, and
• any other securities not in contravention of the Charter.
The Charter and Article X, Section 20 of the State Constitution determines
which securities may be issued only after a vote of the electors of the City
and approved by a majority of those voting on the issue.
36
7.3. CONDITIONS FOR USING DEBT
Debt financing of capital improvements and equipment will be done only
when the following conditions exist:
• When non-continuous projects (those not requiring continuous
annual appropriations) are desired;
• When it can be determined that future users will receive a benefit
from the improvement;
• When it is necessary to provide basic services to residents and
taxpayers (for example, purchase of water rights);
• When the rights of bond buyers and subsequent investors are
protected through full disclosure; and
• When total debt, including that issued by overlapping
governmental entities, does not constitute an unreasonable burden
to the residents and taxpayers.
7.4. DEBT INDICATORS AND TARGET LEVELS OF DEBT
While no absolute measures of debt burden exist, the City recognizes that
municipal bond rating agencies and financial analysts have established key
debt indicators by which they evaluate the credit strength of issuers. Since
debt issued by entities sharing the same geographic area, for example,
Poudre R-1 School District, cannot be controlled by the City, the indicator
that will be used will be calculated using only direct debt issued by the City
itself. The indicator does not include debt issued by the City or by the City
Council as the Board of Directors for the City's utilities, as the revenue
collected for services are the source of repayment. The City Council has
chosen to use direct debt service as a percent of General Fund and debt
service expenditures to monitor its debt.
This indicator measures how the City's debt burden compares to financial
operations. As debt service requirements increase, the flexibility to make
decisions regarding other expenditures is reduced. Excessive debt may be
indicated if the percentage is maintained at very high levels. A debt service
to operating budget expenses ratio of 10 to 15 percent is considered fair;
over 15 percent is generally considered poor.
THE TARGET INDICATOR IS:
Direct debt service as a percent of operating expense: 10 to 12
percent for the 1994-1998 period.
37
By establishing the target indicator defined above and managing debt
accordingly, the City will reduce its debt burden over the next five years.
By 1998, projections show that the annual debt service as a percent of
operating expense will be within the target range.
General Government Debt as a Percentage of
Annual Operating Expense, 1980-1999
30 Full Loading of
All Direct Debt
25 Direct Debt Less
40 Target Zone Some Self—Supporting
% 15
5 Direct Debt Less
All Self—Supporting
0
80 81 82 83 84 85 B6 87 88 89 90 91 92 93 94 95 96 97 98 99
Year
Since the City's sustained growth causes demand for capital improvements
and resulting debt financing, the City target is established at a level above
the median for cities of comparable size. The City target is also adjusted
because certain portions of its debt burden are self-supporting. Specifically,
Anheuser-Busch has pledged to cover a large share of the Sales Tax revenue
debt. Propertytaxes from the Downtown Development Authority District are
pledged to cover its debt service. Finally, Special Improvement District debt
was issued on the premise that it would be self-supporting. Therefore, the
indicator will be tracked using three different debt loadings. The first is a full
loading of direct debt, similar to the calculation method used by Moody's
Investor Service. The second subtracts out from the Moody's calculation the
full Anheuser-Busch debt portion, fifty percent of Special Improvement
Districts debt, and twenty percent of the Downtown Development Authority
Debt. The final loading deducts all Anheuser-Busch, Special Improvement
Districts, and Downtown Development Authority debt. By 1998, the debt
indicators will be approximately 11 % full loading, 6% for the second, and
4% for the final.
38
7.5. SOUND FINANCING OF DEBT
When the City utilizes debt financing, it will ensure that the debt is soundly
financed by:
• Conservatively projecting the revenue sources that will be used to
pay the debt;
• Financing the improvement over a period not greater than the
useful life of the improvements;
• Determining that the benefits of the improvement exceed the
costs including interest costs;
• Maintaining a debt service coverage ratio which ensures that
combined debt service requirements will not exceed revenues
pledged for the payment of debt; and
• Evaluating proposed debt against the target debt indicators.
7.6. FINANCING METHODS
The City maintains the following policies in relation to methods of financing
used to issue debt:
• Total General Obligation (payable from Property Tax levies) debt
will not exceed 10% of assessed valuation per the City Charter;
• Where possible, the City will use revenue or other self-supporting
bonds instead of General Obligation Bonds;
• When appropriate, the City will issue non-obligation debt, for
example, Industrial Development Revenue Bonds, to promote
community stability and economic growth;
• Staff will maintain open communications with bond rating
agencies about its financial condition and whenever possible,
issue rated securities; and
0 Staff will exchange information with Larimer County, Poudre R-1
School District, the Poudre Valley Hospital District and other
entities whose debt would contribute to the overlapping debt
indicators for the purpose of monitoring such debt burdens.
Annual budgets include appropriations for debt service payments and
reserve requirements for all outstanding debt and for debt anticipated to be
issued within the ensuing budget year.
39
CASH MANAGEMENT AND INVESTMENT POLICY
(Summarizing Resolution No. 90-44)
8.1. POLICY STATEMENT
This policy was adopted by the Council of the City of Fort Collins as
Resolution 90-44. It is intended to supplement and expand upon Ordinance
No. 109, 1988, "Providing for the investment and deposit of public funds
and moneys of the City of Fort Collins."
8.2. SCOPE
This policy shall apply to the investment of all general and special funds of
the City of Fort Collins (hereinafter referred to as the "City") over which it
exercises financial control, including the City of Fort Collins Firefighters
Pension and General Employees Retirement Funds.
8.3. OBJECTIVES
The City's principal cash management and investment objectives are:
• Preservation of capital through the protection of investment
principal.
• To maximize the cash available for investment.
• Maintenance of sufficient liquidity to meet the City's cash needs.
• Diversification of investments to avoid incurring unreasonable risk
regarding a specific security, maturity periods, or institution.
• To maximize the rate of return for prevailing market conditions for
eligible securities.
• Conformance with all federal, state and other legal requirements.
8.4. DELEGATION OF AUTHORITY
Responsibility for the collection and investment of all City funds is assigned
to the Financial Officer by the Charter, subject to direction of Council by
resolution. The Financial Officer may appoint other members of the Finance
Department to assist in the cash management and investment function.
The City Manager shall appoint an investment committee consisting of the
Financial Officer and at least two (2) other employees of the City
knowledgeable in the area of governmental investments. The purpose of the
committee shall be to provide advice to the Financial Officer regarding the
40
operation of the Cash Management and Investment Program.The committee
shall also review the actual rate of return on the portfolio as compared to
the target rate of return.
The Financial Officer shall have the discretion to appoint one or more
investment advisors registered with the Securities and Exchange
Commission. All investments made through such investment advisors shall
be within the guidelines of this Cash Management and Investment Policy.
8.5. PRUDENCE
The standard of prudence to be used for managing the City's assets is the
"prudent investor" rule, which states, "Investments shall be made with
judgment and care, under circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in the management of their
own affairs, not for speculation, but for investment considering the probable
safety of their capital as well as the probable income to be derived."
8.6. ELIGIBLE INVESTMENTS
All investments will be made in accordance with Ordinance 109, 1988 and
the Cash Management and Investment Policy adopted by the Council of the
City of Fort Collins by Resolution 90-44. The following is a summary of the
authorized investments:
• Any securities now or hereafter designated as legal investment for
municipalities in any applicable statute of the State of Colorado.
• Interest-bearing accounts or time certificates of deposit at state
or federally-chartered savings and loan associations or national
banks in Colorado which are designated as depositories for public
moneys.
0 Obligations of the United States Government and obligations
issued by an agency, instrumentality or public corporation of the
United States.
• Obligations issued by or on behalf of the City.
• Obligations issued by or on behalf of any state, political
subdivision, agency, instrumentality or public corporation having
an investment grade rating from Moody's Investors Service or
Standard & Poor's Corporation.
41
• Prime-rated bankers acceptances and prime-rated commercial
paper.
• Guaranteed investment contracts of domestically-regulated
insurance companies having a claims-paying ability rating of "AA"
or better from Standard & Poor's or A+ from Best Rating
Services.
• Repurchase and reverse repurchase agreements of any marketable
security described in Ordinance No. 109, 1988 which afford the
City a perfected security interest in such security.
• Local government investment pools authorized by the State of
Colorado.
• Shares in any money market fund or account, unit investment
trust or open-or close-end investment company, all of the net
assets of which are invested in securities described in this section,
to the extent not prohibited by Colorado Constitution or State
Statutes.
Pension funds may also be invested in equipment trust certificates, real
property and loans secured by first mortgages or deeds of trust on real
property, tax certificates issued on real property in Colorado, and common
or preferred stock or debt obligations of U.S. Corporations.
8.7. REPORTING AND REVIEW
An investment report shall be prepared on a quarterly basis and submitted
to the City Manager. An annual summary shall be published in a newspaper
of local circulation. The Financial Officer and designated investment staff
shall meet at least quarterly to review the portfolio's adherence to
appropriate risk levels and to compare the portfolio's total return to the
established investment objectives and goals.
8.8. ETHICS AND CONFLICTS OF INTEREST
City officers and employees involved in the investment process shall adhere
to the rules of conduct concerning conflicts of interest as stated in Art. IV,
Section 9 (B) of the Charter of the City of Fort Collins, Colorado.
42
8.9. POLICY REVISIONS
This Cash Management and Investment Policy will be reviewed periodically
by the City Manager and the Financial Officer and may be amended by City
Council as conditions warrant.
ECONOMIC DEVELOPMENT POLICY
(Summarizing Resolution 94-126)
9.1 POLICY STATEMENT
The City of Fort Collins has chosen a partnership model for economic
development. The partnership is between the public and private sector, and
the citizens of Fort Collins. The City provides many services to existing and
prospective business. The City facilitates the processes and procedures
required for site development, provides data and demographic information,
invests in municipal infrastructure, and considers other initiatives on a case-
by- case basis.
The private sector shares responsibility with the public sector for the
retention and expansion of business or industry with the City. This may
include marketing and promotion of the community, outreach to existing
business, and assistance in project financing and small business counselling.
9.2 ROLE OF THE CITY OF FORT COLLINS
Businesses considering expansion or relocation are most concerned and
interested the overall quality of life. Some measures of quality of life
include: the quality of primary and secondary schools, the skill of the work
force, the quality of municipal services, and the state of the natural
environment.
The City's primary role in economic development focuses on those areas
which directly involve City process and procedure. the City's goal is to
encourage and support economic development and economic opportunities
which provide primary employment, increase private investment within the
community and improve the quality of life for its residents.
The City strives to achieve this goal through the following policies:
43
• Promotion of the City as a good place to live and work.
• Emphasis on comprehensive, quality municipal services as the
City's primary contribution to the community's economic
development effort.
• Create a positive climate for both local and new business.
• Assist small business retention and expansion as appropriate.
• Encourage and promote workforce training, retraining,
education, and employee support services to assist in the
creation and expansion of meaningful employment opportunities.
• The City's role in dealing with prospective expansions or
relocations focuses on planning and the provision of municipal
services and facilities such as streets and utilities.
• Financial incentives will be considered on a case by case
basis after thorough staff analysis and Council discussion of
the merits of each individual proposal.
The City has identified several action steps to be used to implement the
polices above:
• Work with other public and private entities to promote
policies and programs which encourage education, training,
workforce development, and basic, advanced, and technological
skills enhancement.
• Provide prospective businesses with information regarding
municipal services, schools, recreational opportunities,
health care, and other services available within the
community.
• Notify existing and prospective business of the opportunities
available through Colorado State University and the private
sector in the areas of product and process development.
• Maintain and enhance utility and technological infrastructure
and strive to provide consistently reliable and efficient
service.
• Maintain a reasonable and equitable tax structure.
44
• Provide assistance to business and industry about City
process and procedure.
• Afford new and existing business and industry the opportunity
to seek financial incentives from City, state, and federal
sources.
9.3. ROLE OF THE PRIVATE SECTOR
The private sector plays a significant role in the success of the overall
economic development strategy. The private sector mission is to work with
the City and other public organizations to retain and expand basic industry
within the City and County. This effort requires the support of Fort Collins,
Inc., the Chamber of Commerce and other entities referenced below, as well
as local banks, financial institutions, and existing business and industry.
The private sector role is characterized by its ability to work with new and
existing business in a confidential manner. Real estate values, business
climate, financing options, and site options are most appropriately discussed
by the private sector.
9.4. ROLE OF OUTSIDE ENTITIES
The efforts of the City and private sector to enhance the economic
prosperity of the community are directly and indirectly supported by several
organizations and entities including:
Colorado State University
Downtown Development Authority
Larimer County
Convention & Visitor's Bureau
Poudre R-1 School District
Private Industry Council
Employment and Training Service.
Though each has an independent focus, their work contributes to the overall
quality of life and prosperity enjoyed with the community. In this way, the
network required to conduct an effective community-based economic
development is provided.
45